Swing Trading >> Daytrading

[HolyGrailSeeker]

This is my honest opinion, any day traders (If there is any successful ones) care to debate?

Daytrading may be better in terms of a smoother equity curve if done successfully,
but for long term pure returns, nothing beats swing trading.

It is way easier to lose money in daytrading when you overtrade and commission
eats to your profit, intraday movements are smaller compared to swing trading.
Thus, profits are smaller with more fees incurred. You really have to pick your spots
to have a meaningful trade. It is way easier to make mistakes in daytrading.

 

[Akhaldanos]

It's easy to lose money trading, whatever the method. Period.
Daytrading - the opportunity factor is the best here. But, one should be very picky when NOT to day-trade. Not all hours are good for daytrading, not all days are good for daytrading.
Swing trading on the other hand can also be very frustrating when certain instruments do very little for weeks and months.
Generally speaking, go where there is a lot of movement, often. Price movement is the sole ingredient needed to make money. All the rest should be centered around this premise.

 

[HolyGrailSeeker]

It's easy to lose money trading, whatever the method. Period.
Daytrading - the opportunity factor is the best here. But, one should be very picky when NOT to day-trade. Not all hours are good for daytrading, not all days are good for daytrading.
Swing trading on the other hand can also be very frustrating when certain instruments do very little for weeks and months.
Generally speaking, go where there is a lot of movement, often. Price movement is the sole ingredient needed to make money. All the rest should be centered around this premise.

The lesser you trade the less chance for a mistake.
If the price movements are dire for swing trading, what makes you think day trading will be profitable?

 

[Akhaldanos]

If the price movements are dire for swing trading, what makes you think day trading will be profitable?

Experience.

About Mistakes: define - what constitutes a mistake in trading FOR YOU?

 

[HolyGrailSeeker]

Experience.

About Mistakes: define - what constitutes a mistake in trading FOR YOU?

Lesser total profit to higher fees ratio in intraday vs a longer term.

Patterns in stocks do form but are stronger the further you zoom out. The shorter timeframe, the more random and unpredictable the moves are. Thus, most trades are at best slightly better than a coin toss.

 

[easymon1]

nothing beats swing trading.

sounds good to me.
What Setups and Triggers get you into a position?
Double Tops? Candlesticks? Support Resistance? Fibs? MAverages? Channels?
What gets you out of a Position? Measured Moves? Prior Swings?

What timeframe charts do you like to use.
What hold times are common for your methods for the last year or two?

Got a standard swing trade setup that you use, that can share here?

here's one of my go-to's for day trading with hammers and some engulfings at SnR. Not complicated enough for some traders, but in today's markets, these work fine.

https://elitetrader.com/et/threads/...t-right-here-baby.335635/page-10#post-5014575

 

[HolyGrailSeeker]

sounds good to me.
What Setups and Triggers get you into a position?
Double Tops? Candlesticks? Support Resistance? Fibs? MAverages? Channels?
What gets you out of a Position? Measured Moves? Prior Swings?

What timeframe charts do you like to use.
What hold times are common for your methods for the last year or two?

https://elitetrader.com/et/threads/...t-right-here-baby.335635/page-10#post-5014575

I use mostly price action. I find daily works the best.

 

[easymon1]

price action

Price action is such a vague term, is there anything more descriptive that you could point to?

 

[HolyGrailSeeker]

price action as in Double Tops, what else?

sorry, i re edited that before i saw your post.
i'll check back and delete this post after you have had time to look this mess over, lol. thanks

It can be anything under the sun. Every stock has its own character or vibration. But then again, I like to keep it simple. Looking for too many patterns is also a headache and can be like noticing the face in the cloud.

In my opinion, the time or Y axis is underappreciated and looking at it with the combination of price and volume as an indicator helps.

 

[Akhaldanos]

Patterns in stocks do form but are stronger the further you zoom out. The shorter timeframe, the more random and unpredictable the moves are. Thus, most trades are at best slightly better than a coin toss.

All true. The key that works for me intraday is: find those occasions when the odds are far better than a coin toss and squeeze the hell out of them. Took me half a decade to figure this out. For example, I am able to get +10 pips on EURUSD, risking -9 pips with about 70% hit rate, 5 opportunities per day on average. Even if my hit rate drops to 50%, I am a little bit ahead. If one is doing the right size and compound the profits... do the math. The real fun for me though, are the DAX, ES & NQ index futures, all in their regular session.

In longer time-frame swings: your working capital may get locked in trades for days and weeks, oscillating between your SL & TP levels. This slows down the turnover rate big time.

Regarding the fees: they are quite acceptable these days, but yes, their % share increases in the lower time-frames.